In December 2009, Berkshire Hathaway and Leucadia National Corporation formed a new entity named Berkadia Commercial Mortgage in order to acquire Capmark Financial Group’s North American loan origination and servicing business. Berkshire and Leucadia each invested $217.2 million of equity capital to fund the Capmark transaction. In addition, Berkshire has provided a $1 billion five year secured credit facility to Berkadia, of which $580.5 million was outstanding under the facility as of December 31, 2009. Read this article for more information.
In a conference call this afternoon, Bruce Berkowitz answered a number of shareholder questions regarding The Fairholme Fund, the state of the overall stock market, and prospects for health care reform. Mr. Berkowitz’s record at The Fairholme Fund since its inception on December 29, 1999 has been nothing short of extraordinary. Based on the fund’s semi-annual report dated June 30, 2009, annualized performance since inception has been a gain of over 12% annualized compared to a loss of over 3% annualized for the S&P 500. Read this post for a summary of the conference call.